Everything you need to know before investing in Granny Flats!
While granny flats tend to be viewed as the domain of teenagers or elders, they can also produce highly successful investments.
The humble granny flat is always seen as a way of giving your home more space. Perhaps you have a moody young person that wants more room or your elderly mother or dad is looking for a place to live near grandchildren.
Granny flats can also be used to generate rental income for you and your family as an investment done property. They are easy to purchases or build also easy to maintain and provide a stable revenue source. However, it is not safe to buy or construct a granny flat as an investment property, so read about the benefits and disadvantages of investing in a granny flats Penrith.
As affordability issues continue to hit the public in Australia’s mega cities, finding a low-maintenance rental property in a desirable location is becoming increasingly difficult. Given this, granny flats Penrith may be a great way to maximize your income by using the space you already own.
Granny flats are typically defined as secondary residences, meaning that they are constructed on the same land as the main residence. granny flats Penrith are also independent homes, meaning that they have their own bathroom, kitchen, room, laundry and living room with their separate entrance.
There are many options to add a granny flats Penrith to your property, for example by adding a standalone building to your courtyard or by building a secondary apartment over the garage. It is important to remember that, wherever you choose to add the granny flats Penrith, you have to have your own entrance in order to meet regulations.
What regulations and rules should be taken into account?
A number of states and territorial governments have been led to adopt measures to make it easier to build a granny flat throughout Australia. In NSW, for example, new regulations have been introduced by the Department of Planning and Environment to make it easier and faster to obtain the granny flat authorisation, which saw the number of new granny flats.
Together with NSW, the West Australian, Northern Territory, Tasmanian and ACT administrations are all enabling people to rent a granny flats Penrith in order to generate additional income. In Queensland, Victoria and South Australia, this practice is currently not permitted.
It is essential to make sure that your planned addition is in complete conformity with all applicable laws before you buy or develop a modular granny flats Penrith. See your local council for regulations in your area
What are the tax consequences of an investment?
If you rent your granny flats Penrith to generate additional income, you have to pay tax on your rental income. Your income tax bracket and the marginal tax rate will depend on how much tax you pay.
You can also claim your granny flat investment as a deduction from the value of your tax every year. Bear in mind that the portion of your property you lease generally has a Capital Gains Tax (CGT) liability.
Consider these points before investing in granny flats Penrith and you are good to go for an amazing investment opportunity!